Secured Credit Cards Are Easy To Get And Help Build Your Credit Score

Authored By:

As we have pointed out before, establishing credit can be tricky if you do not already have credit. The first thing any lender wants to do when you apply for an account is to check your credit report. And if you have no credit, there will not be anything on the report that suggests that you are worthy of any. It’s a classic “Catch 22” situation. What can you do?

There are several solutions, but the best of them is for you to establish an account with a company that offers a secured credit card. Like the name suggests, such a card is “secured’ by cash collateral. When you open your account, you will provide the lender with a cash deposit. This money will be placed into an interest bearing account in your name and as long as you have the card, the money will be held there.

Your card will be issued to you with an available limit that does not exceed the amount of the deposit. In some cases, the limit will be as little as half of the deposit amount, but more often than not, you will be granted a limit of close to the total deposit amount.

(These cards differ from prepaid credit cards, where there is no bank account that secures the card. With prepaid cards, the money is actually “loaded” onto the card itself. Your card has a limit of however much cash you gave them when you purchased the card. These cards may be “reloaded” for repeated use, but they are generally considered to be debit cards and do not help you establish a credit history, although there are some exceptions to this.)

Having applied and put up a deposit to secure the account, you will have a credit card that you may use just as anyone else might use one. The card is otherwise indistinguishable from any other “normal” credit card. You will receive monthly bills, and as long as you pay them on time, you will be earning credit in your name and building your FICO credit score. You may continue to use this card for as long as you like, but at some point you will probably want to try to obtain an unsecured credit card.

Unsecured credit cards tend to have lower interest rates than do secured cards. Plus they are less likely to include an annual fee for their use. And of course, they don’t tie up some of your cash in a bank account that you cannot touch. For anyone who needs to establish credit, a secured card is the way to go, but you do not want to keep using one any longer than is absolutely necessary. They are just too expensive.

Talbert Williams offers debt consolidation referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: www.1debtfreedom.com

Article Source: http://www.FinanceNook.com
Your One-Stop Quality Finance Article Source

Home | Credit | Credit Cards

Read Additional Related Articles from the Credit Cards Category

Listed below are more articles related to the above article.

People interested in the above article "Secured Credit Cards Are Easy To Get And Help Build Your Credit Score" are also interested in the related articles listed below:

Extra Options For Your Credit Card - By : Peter Kenny
Credit Card Traps? - By : Joseph Kenny
Credit Card Debt - Do You Feel Frustrated - By : Scott Knutson
How To Use A Secured Credit Card To Repair Your Credit - By : Ryan Cote
The History Of Credit Cards - By : Ed Vegliante
Simple Methods To Reduce Credit Card Debt - By : Peter J Kenny
Minimum Monthly Credit Card Payments On The Rise - By : Ed Vegliante
Gas Rewards Credit Cards: A Look At The Top Three - By : Ed Vegliante
Credit Cards Gone Wrong - By : Joe Kenny
Credit Card Debt: Coping Tips - By : Jeanette Joy Fisher

Read more related articles in Home | Credit | Credit Cards

Return Home

FinanceNook.com Home

Featured Sites

Internet Marketing
Website marketing strategies and tips for promoting a business online

Small Business Marketing
How to get more customers or clients than you ever dreamed possible

Social Bookmarking

Bookmark on del.icio.us

Popular Articles

RSS Feeds

FinanceNook.com Home | Top of Page

United States of America . United Kingdom . Canada . Afghanistan . Albania . Algeria . American Samoa . Andorra . Angola . Anguilla . Antarctica . Antigua & Barbuda . Argentina . Armenia . Aruba . Australia . Austria . Azerbaijan . Bahamas . Bahrain . Bangladesh . Barbados . Belarus . Belgium . Belize . Benin . Bermuda . Bhutan . Bolivia . Bosnia-Herzegovina . Botswana . Brazil . British Virgin Islands . Brunei Darrusalam. Bulgaria . Burkina Faso . Burundi . Cambodia . Cameroon . Cape Verde . Cayman Islands . Central African Republic . Chad . Chile . China . Colombia . Comoros . Congo . Congo (Dem. Rep.) . Cook Islands . Costa Rica . Côte d'Ivoire . Croatia . Cuba . Cyprus . Czech Republic . Denmark . Djibouti . Dominica . Dominican Republic . East Timor . Ecuador . Egypt . El Salvador . Equatorial Guinea . Eritrea . Estonia . Ethiopia . Falkland Islands and Dependencies . Faroe Islands . Fiji . Finland . France . French Guiana . French Polynesia . Gabon . Gambia . Georgia . Germany . Ghana . Gibraltar . Greece . Greenland . Grenada . Guadeloupe . Guam . Guatemala . Guinea . Guinea Bissau . Guyana . Haiti . Honduras . Hong Kong . Hungary . Iceland . India . Indonesia . Iran . Iraq . Ireland . Isle Of Man . Israel . Italy . Ivory Coast . Jamaica . Japan . Jordan . Kazakhstan . Kenya . Kiribati . Korea (North) . Korea (South) . Kuwait . Kyrgyzstan . Laos . Latvia . Lebanon . Lesotho . Liberia . Libya . Liechtenstein . Lithuania . Luxembourg . Macau . Macedonia . Madagascar . Malawi . Malaysia . Maldives . Mali . Malta . Marshall Islands . Martinique . Mauritania . Mauritius . Mexico . Micronesia (Federated States) . Moldova . Monaco . Mongolia . Morocco . Mozambique . Myanmar (Burma) . Namibia . Nauru . Nepal . Netherlands . Netherlands Antilles . New Caledonia . New Zealand . Nicaragua . Niger . Nigeria . Niue . Norfolk Island . Northern Mariana Islands . Norway . Oman . Pakistan . Palau . Palestine . Panama . Papua New Guinea . Paraguay . Peru . Philippines . Poland . Portugal . Puerto Rico . Qatar . Reunion . Romania . Russia . Rwanda . Sahara . Saint Helena . Saint Kitts and Nevis . Saint Lucia . Saint Pierre & Miquelon . Saint Vincent & The Grenadines . Samoa . San Marino . São Tomé & Príncipe . Saudi Arabia . Senegal . Serbia . Seychelles . Sierra Leone . Singapore . Slovakia . Slovenia . Solomon Islands . Somalia . South Africa . Spain . Sri Lanka . Sudan . Suriname . Swaziland . Sweden . Switzerland . Syria . Taiwan . Tajikistan . Tanzania . Thailand . Togo . Tongo . Trinidad & Tobago . Tunisia . Turkey . Turkmenistan . Tuvalu . Uganda . Ukraine . United Arab Emirates . Uruguay . Uzbekistan . Vanuatu . Vatican City (Holy See) . Venezuela . Vietnam . Yemen . Zaire . Zambia . Zimbabwe

Template Design by Larry Lim | Powered by Article Dashboard